Microsoft Corp Chief Executive Steve Ballmer has signaled a new direction for the world's largest software company, pointing to hardware and online services as its future, taking a page from long-time rival Apple Inc.

Ballmer's comments in his annual letter to shareholders published on Tuesday suggested that Microsoft may eventually make its own phones to build on its forthcoming own-brand Surface tablet PC and market-leading Xbox gaming console.

"There will be times when we build specific devices for specific purposes, as we have chosen to do with Xbox and the recently announced Microsoft Surface," wrote Ballmer.

The new approach mimics Apple Inc, whose massively successful iPhone and iPad demonstrated tight integration of high-quality software and hardware and made Windows devices feel clunky in comparison.Link to Original Source